1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Metrics vs Peers
3. Valuation
4. Offer Terms
5. Financial Statements
Discussion
Research report, target price, DCF and forensic scores are for subscribers. View plans
Symbol
LTM
Listed on
2024-07-25
Sector
Industrials
Subsector
Passenger Airlines
Offer Range
—
Shares Offered
19M
$7.3B
Implied Upside vs Midpoint
Description
(Note: This is LATAM Airlines’ public offering of American Depositary Shares (ADS) on the New York Stock Exchange. The selling shareholders are offering 19.0 million ADS. Each ADS represents 2,000 common shares. The company will not receive any proceeds from the sale of the ADS. LATAM Airlines’ common stock is listed on the Santiago Stock Exchange and on the Chilean Electronic Stock Exchange under the symbol “LTM” – the prospectus says. The public offering price of US$28.06 per ADS is the as-converted price of the Ch$12.78 per share on the Chilean Stock Exchanges on July 17, 2024.) We are the largest airline group in South America, with over twice the number of flights of any other airline group in the region, and one of the 10 largest airline groups in the world, as measured by the number of flights operated by us in the 12 months ended March 31, 2024. (Incorporated in Chile)
▲ Cheaper than its peers on 2 of 2 valuation measures
| Metric | Value | Peer median | Among peers | Trend |
|---|---|---|---|---|
EV / revenue | 1.1x | 7.0x | ||
Price / earnings | 12.5x | >100x | ||
Revenue growth | 24.3% | 30.6% | ||
Gross margin | 24.3% | 36.9% | ||
Operating margin | 9.3% | 7.4% | ||
Net margin | 5.0% | 0.1% | ||
Free cash flow margin | 12.6% | 7.5% | ||
Rule of 40 | 43.9% | 36.5% | ||
Net cash / market cap | -72.0% | 1.9% | ||
Debt / equity | 15.83 | 0.35 | ||
Current ratio | 0.74 | 1.64 | ||
9 premium metrics: DCF value / price, Growth the price needs: how common, Last 12 months vs full year and 6 more Unlock | ||||
Each filing is plotted ahead of the first trading day on the price chart.
| Filed | Form | Price range | Price | Shares offered | Deal size |
|---|---|---|---|---|---|
| 2007-05-10 | 424B2 | — | — | 11,243,865 | — |
| 2007-05-21 | 424B2 | — | $80.56 | 11,243,865 | $905.8M |
| 2007-05-21 | 424B2 | — | — | 22,090,910 | — |
LATAM Airlines Group S.A. income statement and balance sheet, FY Dec 2022 to FY Dec 2025, as reported in SEC filings.
| Metric | FY Dec 2022 | FY Dec 2023 | FY Dec 2024after listing | FY Dec 2025after listing |
|---|---|---|---|---|
| Revenue | $9.4B | $11.6B | $12.8B | $14.3B |
| Gross profit | $1.3B | $2.8B | $3.3B | $4.2B |
| Operating income | $1.2B | $1.1B | $1.5B | $2.3B |
| Net income | $1.3B | $582M | $977M | $1.5B |
| Revenue growth | — | 24.3% | 10.2% | 11.2% |
| Gross margin | 13.4% | 24.3% | 25.5% | 29.2% |
| Operating margin | 12.9% | 9.3% | 12.0% | 16.4% |
| Net margin | 14.3% | 5.0% | 7.6% | 10.3% |
| Metric | FY Dec 2022 | FY Dec 2023 | FY Dec 2024after listing | FY Dec 2025after listing |
|---|---|---|---|---|
| Total assets | $13.2B | $14.7B | $15.3B | $17.6B |
| Total liabilities | $13.2B | $14.2B | $14.5B | $16.3B |
| Total equity | $30.7M | $438M | $711M | $1.3B |
| Cash & equivalents | $1.2B | $1.7B | $2.0B | $2.2B |